Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Northern California hospitals allegedly boycott heart surgeon’s services, (Dec 30, 2015)

By Greg Hammond, J.D.

NorthBay Medical Center and St. Helena Hospital agreed with other competing physicians to force a heart surgeon out of the market for cardiovascular, thoracic, and related surgical services, according to a complaint filed in the federal district court in San Francisco (Northern California Minimally Invasive Cardiovascular Surgery, Inc. v. NorthBay Healthcare Corp., December 29, 2015).

Northern California Minimally Invasive Cardiovascular Surgery, Inc. and heart surgeon Dr. Ramzi Deeik claim that the two hospitals and competing physicians enforced a tacit agreement to deprive Deeik of the hospital facilities he required to enlarge their market share and to dispose of Deeik’s safety concerns that threatened defendant NorthBay Healthcare Corp.’s new vascular surgery program.

In particular, Deeik claims that the alleged conspirators appointed a competing physician to destroy Deeik’s credibility and reputation. The physician purportedly made false accusations that Deeik engaged in various criminal activities, including embezzlement, allegations that were later found to be defamatory. Nevertheless, NorthBay removed Deeik from his position as director of cardiac surgery and terminated a valve program he had been developing. He was subsequently precluded from all or substantially all of his income opportunities at NorthBay, according to the complaint.

As a result of the alleged conspiracy, Deeik claims significant anticompetitive harm to the market for cardiovascular and thoracic surgery in Napa and Solano counties in terms of quality of care, the range of services offered, the number of surgeons, and cost.

The four-count complaint alleges that the defendants conspired to engage in a group boycott, in violation of Section 1 of the Sherman Act and the California Cartwright Act; engaged in unfair competition; and committed tortious interference with prospective economic advantage. Deeik seeks a temporary restraining order and permanent injunctive relief, compensatory and trebled damages, pre-judgment and post-judgment interest, as well as costs, expenses, and reasonable attorney fees.

Attorneys: Jarod M. Bona (Bona Law P.C.) for plaintiffs.

Companies: Northern California Minimally Invasive Cardiovascular Surgery, Inc.; NorthBay Healthcare Corp.; NorthBay Healthcare Group, Inc.; NorthBay Healthcare Medical Group, Inc.

News: Antitrust CaliforniaNews